Swedish furniture group Nobia reported UK sales continued to be volatile in Q4 and would place a “higher focus” on Magnet in 2022, although its Nordic market remained strong, in its year-end report 2021.

President and CEO of Nobia Jon Sintorn

In the final quarter, net sales increased to SEK 3,509m (3,450) which corresponding to organic sales growth of 0%.

Its operating profit increased to SEK 238m, corresponding to an operating margin of 6.8%.

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Nobia reported in the Nordics, the company had full year growth of 10%, and EBIT margin of 13.7% and “solid” order book in retail and projects going into 2022.

Although its central European markets were impacted by further corona restrictions in the quarter, the company cited the region had “another good year” with 12% organic growth and an EBIT margin of 11%.

In the UK, organic growth for the year was more subdued at 6% with a margin of 0.5% with “good” development in Magnet Trade despite project business being “considerably” down.

President and CEO of Nobia Jon Sintorn commented: “Going forward in the UK we will put higher focus on Magnet.

“To drive profitable growth with the brand we are further strengthening our organisation, upgrading our product portfolio and selective parts of our retail network, investing in marketing and improving product availability.

“We have also exited unprofitable business and are reviewing our project business. Currently Magnet has a good trading momentum during Winter sales.”

He commented the company had compensated inflationary pressure by improving our price points, across markets, albeit with a lag in the Nordics due to its long order book, adding: “We expect to fully compensate for the oncost starting from Q1 2022.”

Sintorn concluded: “We made plenty of progress on our strategic agenda in 2021. With a state-of-the-art factory in the Nordics progressing according to plan, new product introductions with strong focus on design and sustainability and initiatives to drive profitable growth in all our regions. We will make even more progress in 2022.”